2025-09-26 07:14
SINGAPORE, Sept 26 (Reuters) - Asian trading firm Cathay Petroleum has agreed an annual deal marketing Brazilian crude oil in the Asia-Pacific region for independent producer Prio (PRIO3.SA) , opens new tab, a trading executive with direct knowledge of the deal said. The deal to market 110,000 barrels per day of oil for Rio de Janeiro-based Prio marks an expansion in the trading portfolio for Cathay Petroleum, which turned around nearly 300,000 bpd of crude last year. Sign up here. The trading executive declined to be named because the deal was not public. The agreement took effect around June and has not been previously reported. Hong Kong-incorporated Cathay, an active physical crude oil trader, has recently made two high-profile hires to expand its business. Cathay Petroleum declined to comment. A Prio spokesperson said the company does not comment on its commercial relationships. However, the spokesperson said Prio's crude oil production was set to exceed 200,000 bpd next year thanks to the start of production at the Wahoo field and the completion of its acquisition of a 60% stake in the Peregrino field from Norway's Equinor (EQNR.OL) , opens new tab. Last year, Prio reported production of 100,000 bpd. Prio, which specialises in reviving mature oilfields, has grown production through a string of acquisitions since it was established a decade ago. These include taking full ownership of the Wahoo field previously owned by TotalEnergies (TTEF.PA) , opens new tab and BP (BP.L) , opens new tab and the purchase of a 40% stake from China's Sinochem Group in the Peregrino field operated by Equinor. Prio's production is mostly heavy crude grades, some with high viscosity such as those from the Peregrino field, said the executive. Peregrino crude is a heavy, high-viscosity oil with an API gravity of 14.3 degrees and 1.63% sulphur content, according to Equinor's website. Similar to Canada's new TMX export grade, heavy Brazilian grades are welcomed by Asian refineries with more sophisticated processing units that can produce higher-value fuel from the relatively cheaper feedstock, trading sources said. Cathay Petroleum, founded by a former Chinese state oil trader, employs a dozen crude traders in Singapore and London, making it one of the biggest crude trading desks among independent trading houses. https://www.reuters.com/business/energy/trader-cathay-petroleum-marketing-deal-with-brazils-prio-source-says-2025-09-26/
2025-09-26 06:56
Ukraine attacks dent Russian refining capacity Some Russian regions face fuel shortages Iraq's Kurdistan to resume oil flows to Turkey Brent and WTI benchmarks set for strong weekly gains HOUSTON, Sept 26 (Reuters) - Oil prices rose on Friday as Ukraine's drone attacks on Russia's energy infrastructure cut the country's fuel exports. Brent futures settled at $70.13 a barrel, up 71 cents, or 1.02%. U.S. West Texas Intermediate (WTI) crude finished at $65.72 a barrel, gaining 74 cents, or 1.14%. Sign up here. Both benchmarks are set to register their biggest increases since mid-June. "Markets continued to be focused on the situation between Russia and Ukraine," said John Kilduff, partner with Again Capital. "These drone attacks by Ukraine are beginning to add up." Russia will introduce a partial ban on diesel exports until the end of the year and extend an existing ban on gasoline exports, Deputy Prime Minister Alexander Novak said on Thursday. The drop in refining capacity has left several Russian regions facing shortages of certain grades of fuel. In addition to the drone attacks, Andrew Lipow, president of Lipow Oil Associates, said U.S. government action was also supportive. "President Trump continues to pressure U.S. allies to reduce Russian imports," Lipow said. "We might see India and Turkey reduce some of their Russian imports." NATO's warning of a response to further violations of member nations' airspace has ratcheted up tensions from the war in Ukraine and raised prospects of additional sanctions on Russia's oil industry, said ANZ analyst Daniel Hynes. On the supply side, crude oil exports are scheduled to resume on Saturday from Iraq's semi-autonomous Kurdistan region, the state news agency said, citing state marketer SOMO, which will transport the oil via pipeline to Turkey’s Ceyhan port. "The market will be watching Kurdish production to see what that will add to supply," Lipow said. On the demand side, U.S. gross domestic product increased at an upwardly revised 3.8% annualized rate in the past quarter, the Commerce Department's Bureau of Economic Analysis said in its latest estimate on Thursday. "If Russia's supply to China and India is changed they'll be looking for supply," Again Capital's Kilduff said. "U.S. economic data has been OK. And with the Fed easing interest rates that will contribute to demand." However, stronger-than-expected economic data could make the U.S. Federal Reserve more cautious about cutting interest rates after a cut of 25 basis points last week, its first since December. https://www.reuters.com/business/energy/oil-set-biggest-weekly-gain-three-months-russia-cuts-fuel-exports-2025-09-26/
2025-09-26 06:44
BOJ's next rate hike likely in October or December, Sakurai says Chance of Oct hike may have risen after Sept meeting dissent Washington's weak-dollar policy adds to BOJ rate-hike pressure TOKYO, Sept 26 (Reuters) - The Bank of Japan will probably raise its benchmark interest rate at least four more times to 1.5% before Governor Kazuo Ueda's term ends in early 2028, former central bank board member Makoto Sakurai told Reuters. Sakurai, who retains close contact with incumbent policymakers, forecast another hike by year-end, two more increases in fiscal 2026, and one or two hikes in the year ending March 2028. Sign up here. "The BOJ is likely to steadily raise interest rates and normalise monetary policy," he said, adding that Japan's economy is in good shape with big companies reaping hefty profits from price hikes and the boost to exports from a weak yen. The BOJ raised its short-term policy rate to 0.5% in January, but has since kept interest rates steady on the view that more time was needed to scrutinise the impact of U.S. tariffs on the economy. Sakurai said he expects the next hike to come either in October or December. The central bank's quarterly "tankan" business survey - due on October 1 - is among key data that could affect the board's decision. The tankan is likely to show resilience in corporate morale and profits, which could help the BOJ make the case for an October rate hike, Sakurai said. "But the BOJ won't have enough hard data to judge whether the hit from U.S. tariffs will stay limited," he said. The chance of an October rate hike may have risen somewhat after two of the board's nine members dissented from the BOJ's decision in September to keep rates steady, Sakurai said. "Though it's hard to tell, the dissents could have been an intentional signal to markets that a rate hike is approaching," he added. A Reuters poll, taken before last week's BOJ meeting, showed a majority of economists expect another 25-basis-point hike by the year-end. But others thought a hike might not come till January. The U.S. administration's weak-dollar policy may also pile pressure on the BOJ to raise rates steadily, Sakurai said, pointing to U.S. Treasury Secretary Scott Bessent's comments in August that the BOJ was "behind the curve" in dealing with inflation. A joint statement by the U.S. and Japan in September, which reaffirmed their commitment to "market determined" exchange rates, is likely Washington's warning against Tokyo to avoid intervening in the market to combat rises in the yen, he said. "With the Federal Reserve cutting rates and the BOJ eyeing rate hikes, it's natural for the yen to rise versus the dollar," Sakurai said. "As a trend, we'll likely see a strong yen." Ueda's current five-year term ends in April 2028. https://www.reuters.com/business/boj-likely-hike-rates-15-under-ueda-former-board-member-predicts-2025-09-26/
2025-09-26 06:42
LISBON, Sept 25 (Reuters) - Portugal's Azores archipelago cancelled all tourist and recreational activities for 24 hours and shuttered schools and public services on Thursday, urging people to stay indoors ahead of the arrival of cyclone Gabrielle. Meteorological agency IPMA placed the islands on red alert - the highest emergency level, used only for weather events carrying extreme risk. Sign up here. The environment secretary of the Azores' regional government, Alonso Miguel, told reporters any activities along the coastline and in riverside areas were prohibited for the next 24 hours. The hurricane, packing winds of between 130 and 200 kilometres per hour (81-124 mph), was likely to hit seven of the archipelago's nine islands in the Atlantic Ocean during Thursday night and produce sea swells that could reach 18 metres (59 feet), according to the IPMA. The Azores, known for their lush volcanic landscape, rainy weather and free-grazing cows, are home to about 250,000 people. https://www.reuters.com/business/environment/portugals-azores-extreme-weather-alert-cyclone-gabrielle-approaches-2025-09-25/
2025-09-26 06:39
JAKARTA, Sept 26 (Reuters) - Indonesia's government has reached an agreement with Freeport Indonesia to halt operations at the Grasberg mine to give priority to the search for trapped workers, the country's mining minister said on Friday. A large mud flow earlier this month trapped seven workers at the Grasberg Block Cave underground mine. Two of the workers were found dead on September 20, Freeport said. Sign up here. Production at Freeport Indonesia, which is majority owned by Indonesia's government but operated by U.S. mining giant Freeport McMoRan, has not resumed after the incident, and the stoppage is impacting both output and revenue, minister Bahlil Lahadalia told reporters. Asked when production would be resumed, Bahlia said the government and Freeport will discuss the matter. He added that Indonesia and Freeport had also discussed extending its mining permit beyond 2041. Freeport-McMoRan (FCX.N) , opens new tab on Wednesday declared force majeure at the Grasberg mine and said it was expecting consolidated sales to be lower for copper and gold in the third quarter. The announcement has sent copper prices in Shanghai to a six-month high on Tuesday due to concerns about tight supply. The company said a phased restart and ramp-up of operations at Grasberg, one of the world's largest gold and copper mines, may occur in the first half of 2026. https://www.reuters.com/markets/commodities/mining-freeport-halted-search-trapped-miners-indonesia-mining-minister-says-2025-09-26/
2025-09-26 06:25
Trump slaps fresh tariffs on a broad range of imports U.S. economy grew faster than estimated in second quarter U.S. PCE data due at 1230 GMT Platinum hovers near 12-year high Sept 26 (Reuters) - Gold steadied on Friday as U.S. data tempered expectations for further Federal Reserve rate cuts this year, while fresh tariffs announced by U.S. President Donald Trump provided some support ahead of a key inflation report due later in the day. Spot gold held its ground at $3,748.41 per ounce, as of 0605 GMT, but has climbed 1.6% so far this week. Sign up here. U.S. gold futures for December delivery were also steady at $3,774.50. "Gold is trading in somewhat sluggish fashion, with traders reluctant to get on board with any real conviction in case the core PCE data even vaguely mirrors the jump higher in GDP print," said KCM Trade Chief Market Analyst Tim Waterer. Data released on Thursday showed that weekly U.S. jobless claims declined, while the economy grew faster than estimated in the second quarter on strong consumer spending and business investment. Investors lowered their expectations for Fed rate cuts in October and December, with probabilities falling to 85% and 60% from earlier levels of 91% and 76%, respectively, following U.S. economic data, according to the CME FedWatch Tool. "Trump's latest tariff announcement keeping traders on alert, and the resulting safe-haven flows may act to limit the extent of any immediate downside for gold," said Waterer. On Thursday, Trump announced a fresh round of punishing tariffs on a broad range of imported goods starting October 1. All eyes are now on the personal consumption expenditures (PCE) price index data, the Fed's preferred inflation measure, due at 1230 GMT. The report is expected to show a 0.3% month-on-month rise and a 2.7% year-on-year jump in August, per a Reuters poll. Physical gold demand in China weakened further this week, while steady buying persisted in other major Asian hubs despite the high prices in anticipation of further gains. Safe-haven bullion tends to perform well in a low-interest-rate environment. Spot silver fell nearly 1% to $44.83 per ounce, platinum jumped 0.8% to $1,541.39 to hover near a 12-year high, and palladium gained 0.9% to $1,261.59. All three metals were headed for weekly gains. https://www.reuters.com/world/india/gold-eases-strong-us-data-lifts-dollar-inflation-data-awaited-2025-09-26/
